Location: Davenport-Moline-Rock Island, IA | Metro: Davenport-Moline-Rock Island, IA-IL MSA
| Unit Size | Monthly FMR |
|---|---|
| Studio | $750 |
| 1 Bedroom | $840 |
| 2 Bedrooms | $1,030 |
| 3 Bedrooms | $1,350 |
| 4 Bedrooms | $1,640 |
| 5 Bedrooms | $1,902 |
| 6 Bedrooms | $2,130 |
| 7 Bedrooms | $2,300 |
| 8 Bedrooms | $2,415 |
U.S. Census Bureau data (2024)
In evaluating the investment risk for Section 8 properties in ZIP code 61233, several factors indicate potential challenges that landlords and small-portfolio investors should consider. First, tenant turnover is likely to be higher due to the disparity between the market rent of $750 and the Fair Market Rent (FMR) set at $890 for fiscal year 2024. This gap suggests that tenants who rely on vouchers might struggle to find other affordable housing options, leading to increased churn as they seek better deals.
Vacancy exposure is another critical concern. The days on market (DOM) data is currently unavailable, which makes it difficult to predict how long a property might remain vacant. High vacancy rates can significantly impact cash flow and profitability, especially if the property remains unoccupied for extended periods.
The exposure to deferred maintenance is also notable. While the typical home value data is not available, the median household income of $71,667 provides insight into the financial capabilities of residents. This income level may not support substantial out-of-pocket maintenance costs beyond what the voucher program covers, potentially leaving landlords responsible for additional repairs and upkeep.
However, these risks must be weighed against the significant number of renters in the area. With a 22.4% renter share, there is a high concentration of potential voucher holders, which generally translates to a robust demand for subsidized housing. This high renter density can help mitigate some of the risks associated with vacancy and turnover, as there is a steady pool of tenants seeking affordable rental units.
In conclusion, the investment risk for a first-time Section 8 landlord in ZIP 61233 is moderate. While there are notable risks related to tenant turnover, vacancy exposure, and deferred maintenance, the high renter density offers a buffer against these challenges, ensuring a consistent demand for affordable housing units.
Data Sources: FMR data from HUD (2027). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.